Tim Storm | Orange County, California VA Loans - Tim Storm

Does a Condo in Orange County Need to Be VA Approved for a VA Loan?

January 10, 2016 by Tim Storm

Does a condo in Orange County need to be VA approved for a VA loan?

This is a question that comes up quite a bit for eligible California Veterans looking for a home to purchase. While detached Single Family Homes don’t need to be “approved”, the purchase of condo does need to be within a condo project that has been approved by VA.

The Veterans Administration wants to make sure that a condo being purchased by a Veteran is within a project that has solid financials, no lawsuits, and no unexpected assessments in store for the unsuspecting buyer. So while it may seem frustrating that not all projects are VA approved, it is nowhere near as frustrating as it would be if the condo you buy ended up costing much more monthly because of suddenly increased Home Owners Association Dues.

How Do I Find VA Approved Condos in California?

Depending on the county you live in, it may not be easy to find VA approved condos. But with a little knowledge and some work, you will find that there are a lot of VA approved condo projects in California. VA has a condo lookup site which is used to verify if a particular condo project is approved or not. It ends up being a tedious process since you are first finding condos that meet your requirements only to find out that many are not approved.

To make it even more tricky, many condo projects are not listed by name. Rather, they are listed by Tract number. But Tract number is not something most home buyers will be able to find for the condo they are looking at. For this reason it is important to work with a California VA loan specialist who can help with the condo search. Even better, the VA loan specialist can work with your real estate agent to narrow the search to just VA approved condo projects, saving time and frustration.

Shortcut to Finding VA Approved Condos in California

Some counties within California may have local VA specialists who have put together websites helping to quickly narrow down the search for VA approved condos. In Orange County, www.OrangeCountyVACondos.com provides links for VA approved condos for sales within each city. A Veteran looking for a VA approved condo in Irvine or a VA approved condo in Mission Viejo can quickly find homes by just clicking on the appropriate link.

Your local California VA Loan Officer will be able to provide custom VA loan scenarios based on your financial goals and qualifications.

Authored by Tim Storm, an Orange County VA Loan Officer specializing in VA Loan. MLO 223456. – Please contact my office at the Home Point Financial. My direct line is 949-640-3102. www.OrangeCountyVALoans.com. I will prepare custom VA loan scenarios which will be matched up to your financial goals, both long and short term. I also prepare a Video Explanation of the your scenarios so that you are able to fully understand the numbers BEFORE you have started the loan process.

Filed Under: VA Purchase Loans Tagged With: finding va approved condos, orange county va approved condo, va approved condos

Finding a VA Approved Condo in Orange County the Easy Way

June 30, 2015 by Tim Storm

Finding a VA approved condo in Orange County, CA just got easy. While most homebuyers and their real estate agents will first search for a condo and then go through the tedious process of finding out if the condo is even in a project that is approved for VA financing, there is now a website that is specifically for VA approved condo projects in Orange County.

OrangeCountyVACondos.com – VA Approved Condo Search

At OrangeCountyVACondos.com an Orange County Veteran looking for a condo can quickly find VA approved condos in the city of their choice. The site is first broken up into four sections of Orange County. Each city is listed as well. For example, if a buyer wishes to find VA approved condos in Irvine, all they need to do is click on the appropriate Irvine link, and wallah, you are presented with the list of condos, including information on each condo along with photo’s.

Make Sure the Condo is VA Approved Before Making an Offer to Purchase

It is important to double check to make sure the condo you choose to make an offer to purchase on is still VA approved. An experienced VA lender will be able to quickly verify. It is also very important to talk with an Orange County VA lender who can quickly prepare custom VA loan scenarios and work on the PreApproval. By figuring out the financing before making the offer there is a far better chance of having success with not only getting the office accepted but also actually closing escrow.

Authored by Tim Storm, an Orange County VA Loan Officer specializing in VA Loan. MLO 223456. – Please contact my office at the Emery Financial. My direct line is 949-640-3102. www.OrangeCountyVALoans.com. I will prepare custom VA loan scenarios which will be matched up to your financial goals, both long and short term. I also prepare a Video Explanation of the your scenarios so that you are able to fully understand the numbers BEFORE you have started the loan process.

Filed Under: VA Mortgage, VA Purchase Loans Tagged With: va approved condos

CalVet Loan or VA Loan | Which is Better for Orange County Veterans?

January 29, 2015 by Tim Storm

Which loan program is better for Orange County, CA Veterans – CalVet or VA? It depends on the Veteran and the situation. It also depends on what is happening with interest rates. But in most cases the standard VA loan program will be the best option for a Veteran in Orange County, CA.

Important Differences Between the CalVet and VA Loan Programs

Max Loan Limit for 100% Financing. The 100% VA Loan financing limit in Orange County for a standard VA loan is $625,500 in 2015. And there is are income limitations for VA. Also, it is possible to go even higher than the $0 down limit with VA. This is called a Jumbo VA Loan. Many VA lenders will lend up to $1,500,000. CalVet will currently lender to $611,901 in “non-target” areas, and the Veteran must have income that is less than $108,360 for a 2 person household, or $126,420 for a 3 + person household. The fact that VA has no limitations just makes it easier to work with.
Interest rates. CalVet has a few different interest rate offerings, depending on the “Mortgage Bond” the loan is based on. The QVMB program interest rate is 3.75% with a 4.09% APR. The QVMB has a max loan of $521,250. The QMB has a rate of 4.25% with an APR of 4.6%. The QMB is the program with income restrictions but the loan limit of $611,901. As of this writing, standard VA 30 year fixed rates for loans under $417,000 are 3.25% with a 3.291 APR. For VA loans over $417,001 up to $625,500, interest rates are 3.5% with a 3.651% APR. *Rates effective January 28, 2015. Subject to change.
VA Loan fees are typically lower than fees charged on the CalVet loan program. Also, many VA lenders will be able to offer a rate/fee option that would include a lender credit for all closing closing costs. CalVet charges a 1% Origination Fee on all loans. There will be much more flexibility with a VA loan in helping the Veteran purchase a home with no money out of pocket.
Refinancing if interest rates drop. The CalVet loan does not have a refinance program for situations where interest rates drop. On the other hand, the VA program has what is by far the easiest refinance program. It is called the Interest Rate Reduction Refinance Loan, or IRRRL. With the IRRRL, there is no appraisal or income documentation required from the VA loan borrower to complete the refinance. A CalVet borrower would need to refinance completely out of the CalVet loan and into a VA loan in order to take advantage of lower interest rates. However, that is a tough way to go because since the CalVet borrower doesn’t currently have a VA loan, they would need to do a full refinance, with appraisal, termite inspection and clearance, income documentation, and VA Funding Fee. It would have been easier to just go VA in the first place.
Loan versus contract of sale. CalVet will actually hold legal title for the Veteran because CalVet us a Land Contract, or “Contract of Sale”. Basically, CalVet purchases the property and then sells it to the Veteran using a Land Contract. CalVet holds title, while the Veteran holds “equitable title”. With VA, the Veteran receives title immediately upon purchasing the home, which is like other standard types of financing.

How To Know Which Loan Type if Best for You

The best way to know which program is best for you is to contact an Orange County Military Lending Specialist, who can prepare custom loan scenarios based on your long and short term financial goals. Financing a home is the biggest investment most people will ever make, so making sure you’re research includes all your option can save thousands of dollars over the life of the loan.

Filed Under: VA Mortgage Tagged With: calvet, va versus calvet

5 Myths about the VA Loan Program | Orange County, CA

January 22, 2015 by Tim Storm

VA loans are probably the most misunderstood mortgage program in Orange County, CA. Real estate agents, Loan Officers, home sellers, and even eligible Veterans often receive incorrect information when they inquire about the VA loan program. A recent VA survey found that approximately half of all military veterans do not understand the VA loan program and how they can benefit from it. With this in mind, below are 5 myths about VA loans that Orange County Veterans, and anyone involved in the sale of a home with VA financing, should know and understand.

Myth 1: The VA Loan benefit has a “one time” use.

Fact: Veterans and active duty military can use the VA loan many times. While there is a limit to the Veterans entitlement which determines the amount of VA loan the VA will guarantee, it is important to know that even if the entitlement was used on the previous purchase of a home, once restored, it can be used again. Also, if the borrower has an outstanding VA loan, it is possible to get another VA loan. If the entitlement available is exceeded with the new purchase then a down payment would be required. But the down payment, in many cases, would still be less than that required by other types of loan programs. In Orange County, where the 2015 VA loan limit is $625,500 for 100% financing, there is “bonus entitlement” available for Veteran because of the it is considered a “high cost” area.

Myth 2: VA home loan benefits expire if they are not used.

Fact: For eligible Veterans and active duty military, VA mortgage benefits never expire. This myth most likely comes from the confusion over the Veteran benefit for education. In most cases the Montgomery GI Bill benefits expire 10 years after discharge. But VA mortgage benefits do not expire. It is not uncommon for a Veteran 30 years removed from the military to use the VA loan program for the first time to purchase a home for $625,500 or more in Orange County. The down payment is less ($0 if the price is under $625,500), there is no mortgage insurance, and the interest rates tend to be better than other types of financing.

Myth 3: A Veteran can only have one VA loan at a time.

Fact: You can have two or more VA loans out at the same time as long as you have not exceeded your entitlement and eligibility. Although, as mentioned above, it is possible to exceed the entitlement by coming in with a down payment. It is not uncommon for someone who is moving to Orange County from out of state to purchase a home with a VA loan while already having a VA loan on their out of state property, which has been turned into a rental. Because Orange County has a higher VA loan limit (and bonus entitlement) than most counties throughout the country, Veterans moving from out of state, or even from a low limit California county, will be able to take advantage of their “Bonus Entitlement” that is available in high cost counties like Orange County.

Myth 4: If a borrower has a short sale or foreclosure on a VA loan, they cannot have another VA loan.

Fact: If an Orange County Veteran has a claim on their entitlement they may still be able to get another VA loan. But the maximum amount they would qualify for may be less. VA is actually more flexible than other types of mortgage programs when it comes to the waiting period required after a bankruptcy, short sale or foreclosure. VA only requires a two year wait period for any of these events. FHA requires 3 years after a foreclosure. Fannie Mae and Freddie Mac require 7 years after a foreclosure.

Myth 5: The seller has to pay all of the Veterans closing costs

Fact: The Veteran is allowed to pay most of the closing costs without any restrictions. There are certain costs that are known as “non-allowables”. Non-Allowables are primarily made of up the escrow closing fee and the lender fees. However, the VA borrower is allowed to pay up to 1% of the loan amount towards “non-allowables”. Since most VA lenders do not charge an Origination Fee and will waive lender fees on VA loans, the 1% allowance covers the other non-allowable costs, meaning that the seller does not need to help the Veteran with closing costs. Just like any real estate transaction, everything is negotiable. In Orange County, where a typical VA loan is higher than $300,000, and can easily be higher than $600,000, that 1% allowance more than covers the non-allowables. Also, in many cases the lender can use a “lender credit” to cover the closing costs for the buyer. So it is still possible for a VA buyer to have no down payment and pay no closing costs (a VA No No) without any help from the seller.

The most important first step in the home buying process is getting Prequalified for the loan. For Veterans in Orange County, working with a local VA Loan Specialist is important. The VA loan officer should be able to prepare custom loan scenarios and present them in a unique manner that makes it easy to understand the options available.

Authored by Tim Storm, an Orange County VA Loan Officer specializing in VA Loans. MLO 223456 – Please contact my office at the Emery Financial. Direct line at 949-640-3102. www.OrangeCountyVALoans.com. I will prepare custom VA IRRRL loan scenarios which will be matched up to your financial goals, both long and short term. I also prepare a Video Explanation of your scenarios so that you are able to fully understand the numbers BEFORE you have started the loan process.

Filed Under: VA Mortgage, VA Purchase Loans Tagged With: va loan myths

VA IRRRL Refinance is Popular in Orange County

January 9, 2015 by Tim Storm

The VA IRRRL program, also known as the VA Interest Rate Reduction Refinance Loan, or VA Streamline refinance, is very popular as we start 2015. With interest rates hitting two year lows at the beginning of the year Orange County VA borrowers are able to take advantage of the rate drop by utilizing the IRRRL program. The IRRRL is the easiest type of refinance a homeowner will ever go through, which is why many VA borrowers may refinance more than once if interest rates continue to drop.

FAQ’s for the VA IRRRL Program

Q: Who is Eligible for a VA IRRRL? Anyone that currently has a VA loan is able to refinance using the IRRRL program if they are lowering their interest rate and payment. While there are a few rules and guidelines, generally whoever is currently on the VA loan must also be on the new VA loan.

Q: How difficult is the loan process? The loan process is extremely easy, especially when compared to the loan processing involved in initially getting a loan to buy a home. With the IRRRL program there is no income documentation and no appraisal. The lender will most likely need to verify that at least one of the borrowers has a job, but income is not verified. No tax returns, paystubs, etc. A credit report is run, but primarily just for the mortgage rating and FICO score. A borrower’s FICO score will have some bearing on the interest rate of the new loan, but some lenders will allow FICO scores as low as 580, while some may make an exception for FICO scores lower than 580.

Q: How much does it cost to do an IRRRL? It depends. Many lenders will offer “No Cost” options, where a lender credit is used to cover the closing costs. It is even possible to get enough lender credit to cover the new impound account. But it is also possible to choose a lower interest rate and have closing costs added into the new loan amount. It is important to carefully review each of these options and make sure you are choosing the best IRRRL loan scenario based on your long and short term financial goals. For example, if you think you may move from your home within the next few years, then it would probably make more sense to go with a No Cost scenario, where the breakeven is immediate, versus a scenario with closing costs where the breakeven could be several years out. A good VA IRRRL Lender should be able to prepare loan scenarios and a Side by Side Total Cost Analysis to make sure you see the pro’s and con’s of each option.

Q: How long does it take to close an IRRRL? This depends on the lender. It also depends on how quickly the borrower sends the initial signed paperwork back to the lender. The typical time period to close a VA IRRRL is less than three weeks.

Q What happens to the impound account/escrow account on my current VA loan? After the IRRRL refinance closes your old lender will refund the balance of your impound account back to you. Normally they will send a check that should be received within 30 days of the closing. It is important to realize that as part of the new loan a new impound account for taxes and insurance is set up. The borrower has the option of bringing in money for the new impound account or financing the new impound account into the loan. Either way, they will be receiving a refund of the old impound account after closing, which will act as a reimbursement of the impound account they just set up.

How Do I Know if Interest Rates are Low Enough to do an IRRRL?

You will probably know it’s worth some investigation into the IRRRL program if you are receiving an influx of advertisements in the mail. And of course if the media begins talking about a drop in interest rates then it may be worth a look. Many of the advertisements sent in the mail can be very deceptive, offering extremely low interest rates that may or may not be available, and at a huge cost. For the lenders advertising in this manner it can work if it just generates a phone call. But working with a lender that pulls in VA IRRRL phone calls in this manner is not where your rate shopping should end, because not all lenders are the same. It is important to talk to a local Orange County VA loan specialist who can prepare a custom Side by Side Total Cost Analysis, which will give a thorough breakdown of several IRRRL scenarios compared to your current loan. Going through this type of Analysis can save you thousands of dollars by helping you to make sure you are choosing the right loan scenario.

Filed Under: VA IRRRL - Streamline Refinance, VA Refinance Loans